SBI Cards to list commercial paper on BSE for an issue size of Rs 400-cr
Leading stock exchange BSE on Thursday said SBI Cards & Payments Services has made an application to list commercial paper for an issue size of Rs 400 crore. Post-process, the effective date of listing for the commercial paper at the exchange will be December 13, BSE said in a statement. With this, the number of companies listing their commercial paper (CP) on the BSE BONDS platform will reach eight since the stock exchange came out with the framework for listing of such instruments late last month.
Also, the funds raised by these firms will reach Rs 9,270 crore.
Listing of CPs is expected to lead to efficient transmission of information regarding corporate borrowings and liquidity positions to market participants.
Besides, it will contribute effectively towards development of the commercial paper market and is expected to have a positive effect on the debt capital market.
Commercial paper is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Such instruments can be issued for maturities between a minimum of 7 days and a maximum of one year from the date of issue. CPs are usually issued at a discount from face value and reflect prevailing market interest rates.
So far, National Fertilizers, Chennai Petrochemicals Corporation and GIC Housing Finance, Aditya Birla Finance, NTPC, Indian Oil Corporation and Can Fin Homes have listed their CPs on the BSE
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